Institute and Faculty of Actuaries introduces new pay and bonus strategy

The Institute and Faculty of Actuaries has introduced a new pay and bonus strategy after a merger and restructure.

After the merger of the Institute of Actuaries and the Faculty of Actuaries was completed in 2010, the organisation decided to ensure its structure and reward strategy was robust.

Consultations on pay with employees were completed in July, with the pay for all roles benchmarked in the market.

Previously, staff received a pay rise of inflation plus a 1% performance element. Derek Cribb, acting chief executive, said: “For base salary, we will get good, relevant benchmarking data to ensure roles are tied into what the market says it is worth.”

The organisation has begun a new bonus scheme for the top 30% of staff, paying bonuses of between 5% and 20%. “We decided not to pay less than 5% because people do not get hugely excited by 2% bonuses,” said Cribb.
The institute has also linked all performance objectives to its new corporate plan. The bonuses are based 50% on these objectives, and 50% on behavioural targets.